Some will say yes some will say no. from my own experience no (with an exception below) as I have multiple sites same nitch same IP address that do very well for their "targeted" search terms.

(exception) Now if the sites you are referring to are going after the same keywords then yes this could have an effect on your sites.

It is best if you do have multiple sites within the same nitch is to focus one site on the whole nitch and have the other sites focus on specific areas within that nitch as this gives you the chance to have the focused site get hits for specific terms that may be deeper within the main site that wouldn't show up in a search term.

Example I have a site that sells car tires and I stock all brands well the main site would have all the different brands I sell were the specific sites I would have GE Tires as a site, Cooper tires as a site and so on.

This increases your work load but works.

Thanks bwnbwn for the input.

1. If we have multiple sites targeting same keywords, would it be better to have them distributed on different IPs?
2. Like your example of cooper tire site and GE tire site: If they are on the same IP, it would not make a difference?

Also, does link juice pass to different connected sites hosted on the same IP or does Google discount this?

Sorry for being too inquisitive :)

Also, does link juice pass to different connected sites hosted on the same IP or does Google discount this?

No each site will need to be worked.

1. If we have multiple sites targeting same keywords, would it be better to have them distributed on different IPs?

Yes

Thanks again bwnbwn :)

If two sites on the same IP/C class are targeting the same keywords, if one is moved, wouldn't historical factors still closely connect the two and devalue one?

Marcia I would believe that is correct, but I think he hasn't built the sites yet. Your observation is a good one and is a good guestion for him.

kinley have you already built the sites or getting information as to when you launch the sites?

I still have to host my sites. Will go in for unique c-class IPs for all of them.

BUT, one more question: As their whois information is same and they will be under the same Google Analytics/Webmaster account, would this lead to linkage and subsequent devaluation in SERPs?

>> This increases your work load but works.

...And renewing hosting for each site with different providers is a pain in the neck too...

The whois question is your answer. They know who you are and can link it.

I would suggest starting with ONE site and working on it fully. After a while, go to the next set of targeted keywords with site B. And so on and so forth.

Unless you have a team and can divide the work for each group, working on a basket full of sites all at once, would lead you to no place.

Thanks JohnRoy for the inputs :)